Brazil: Economists Cut Inflation Forecast

Brazilian economists expect the country´s inflation rate will fall more than previously forecast due to a stronger currency, higher interest rates and reduced consumer demand. The annual inflation rate will fall to 5.67 percent by yearend, lower than last week’s forecast of 5.72 percent and down from a rate of 7.3 percent in June, according to a central bank survey of about 100 economists. The new forecast marks the ninth straight week analysts have cut their inflation forecast. Brazil´s central bank has aggressively raised its benchmark lending rate since last September.